diff --git a/libknet/threads_heartbeat.c b/libknet/threads_heartbeat.c
index 8f8a7ecb3..fa1f30c48 100644
--- a/libknet/threads_heartbeat.c
+++ b/libknet/threads_heartbeat.c
@@ -177,7 +177,7 @@ static void _adjust_pong_timeouts(knet_handle_t knet_h)
 				dst_link->pong_timeout_backoff--;
 			}
 
-			dst_link->pong_timeout_adj = (dst_link->pong_timeout * dst_link->pong_timeout_backoff) + (dst_link->status.stats.latency_max * KNET_LINK_PONG_TIMEOUT_LAT_MUL);
+			dst_link->pong_timeout_adj = (dst_link->pong_timeout * dst_link->pong_timeout_backoff) + (dst_link->status.latency * KNET_LINK_PONG_TIMEOUT_LAT_MUL);
 		}
 	}
 
diff --git a/libknet/threads_rx.c b/libknet/threads_rx.c
index 4b0b76568..e8fe264ad 100644
--- a/libknet/threads_rx.c
+++ b/libknet/threads_rx.c
@@ -615,37 +615,42 @@ static void _parse_recv_from_links(knet_handle_t knet_h, int sockfd, const struc
 		timespec_diff(recvtime,
 				src_link->status.pong_last, &latency_last);
 
-		src_link->status.latency =
-			((src_link->status.latency * src_link->latency_exp) +
-			((latency_last / 1000llu) *
-				(src_link->latency_fix - src_link->latency_exp))) /
-					src_link->latency_fix;
-
-		if (src_link->status.latency < src_link->pong_timeout_adj) {
-			if (!src_link->status.connected) {
-				if (src_link->received_pong >= src_link->pong_count) {
-					log_info(knet_h, KNET_SUB_RX, "host: %u link: %u is up",
-						 src_host->host_id, src_link->link_id);
-					_link_updown(knet_h, src_host->host_id, src_link->link_id, src_link->status.enabled, 1);
-				} else {
-					src_link->received_pong++;
-					log_debug(knet_h, KNET_SUB_RX, "host: %u link: %u received pong: %u",
-						  src_host->host_id, src_link->link_id, src_link->received_pong);
+		if ((latency_last / 1000llu) > src_link->pong_timeout) {
+			log_debug(knet_h, KNET_SUB_RX,
+				  "Incoming pong packet from host: %u link: %u has higher latency than pong_timeout. Discarding",
+				  src_host->host_id, src_link->link_id);
+		} else {
+			src_link->status.latency =
+				((src_link->status.latency * src_link->latency_exp) +
+				((latency_last / 1000llu) *
+					(src_link->latency_fix - src_link->latency_exp))) /
+						src_link->latency_fix;
+
+			if (src_link->status.latency < src_link->pong_timeout_adj) {
+				if (!src_link->status.connected) {
+					if (src_link->received_pong >= src_link->pong_count) {
+						log_info(knet_h, KNET_SUB_RX, "host: %u link: %u is up",
+							 src_host->host_id, src_link->link_id);
+						_link_updown(knet_h, src_host->host_id, src_link->link_id, src_link->status.enabled, 1);
+					} else {
+						src_link->received_pong++;
+						log_debug(knet_h, KNET_SUB_RX, "host: %u link: %u received pong: %u",
+							  src_host->host_id, src_link->link_id, src_link->received_pong);
+					}
 				}
 			}
+			/* Calculate latency stats */
+			if (src_link->status.latency > src_link->status.stats.latency_max) {
+				src_link->status.stats.latency_max = src_link->status.latency;
+			}
+			if (src_link->status.latency < src_link->status.stats.latency_min) {
+				src_link->status.stats.latency_min = src_link->status.latency;
+			}
+			src_link->status.stats.latency_ave =
+				(src_link->status.stats.latency_ave * src_link->status.stats.latency_samples +
+				 src_link->status.latency) / (src_link->status.stats.latency_samples+1);
+			src_link->status.stats.latency_samples++;
 		}
-		/* Calculate latency stats */
-		if (src_link->status.latency > src_link->status.stats.latency_max) {
-			src_link->status.stats.latency_max = src_link->status.latency;
-		}
-		if (src_link->status.latency < src_link->status.stats.latency_min) {
-			src_link->status.stats.latency_min = src_link->status.latency;
-		}
-		src_link->status.stats.latency_ave =
-			(src_link->status.stats.latency_ave * src_link->status.stats.latency_samples +
-			 src_link->status.latency) / (src_link->status.stats.latency_samples+1);
-		src_link->status.stats.latency_samples++;
-
 		break;
 	case KNET_HEADER_TYPE_PMTUD:
 		src_link->status.stats.rx_pmtu_packets++;